Foreign Currency Mortgages - the advantages and disadvantages

The vast majority of mortgage borrowers get their mortgage from a mainstream UK lender, paying in pounds sterling and following the Bank of England base interest rate. But there are alternatives... The UK's domestic interest rates are quite low, especially in comparison with recent years, however interest rates are in fact a lot lower in the Eurozone, Switzerland, America and Japan. You have the option of borrowing the money you need for your house purchase in Euros, US dollars, Swiss Francs or Yen, securing the debt on your house and taking advantage of the lower interest rates. This illustration of 3 month money market interest rates demonstrate the differences between UK interest rates and those around the world: Japanese Yen 0.12% Switzerland 1.03% Eurozone 2.46% US $ 4.48% Sterling